Become LIC Agent Salary, Exam, Commission – Imagine a scenario where you cannot find a job or do not want to work but desperately need money. Or, you wish to make extra money for family while saving for the future.
This is a common situation that millions of Indians face. But nothing to worry about. You can work and make money as a LIC agent through Indian Life Insurance Corporation or LIC.
And making money is not the only reason to become a LIC agent. You can also get benefits such as attractive salaries, commissions and lifetime pensions and exclusive club memberships.
You can buy the house of your dreams with a loan at a very low interest rate. And you also enjoy the reputation that comes from working for a respected institution of the Indian government.
Yes. This is possible because it works as a LIC agent. do you want to be like that Read on.
What is a LIC agent?
LIC agent is a very prestigious profession. LIC agents become members of a select community operating in India’s huge banking financial services and insurance (BFSI) industry.
A LIC agent is a female or male promoting life insurance and other insurance maintained by the Life Insurance Corporation of India (LIC).
LIC currently offers different types of life insurance. This means that you will be marketing these financial products from LIC on your social circles and beyond.
LIC representatives are not employees. They are either a form of self-employment or a company made possible by the largest public insurance company in India.
If you are interested, you can learn how to become a LIC agent from this article.
How to Become LIC Agent ?
Becoming a LIC agent is difficult and easy. It depends on the individual’s skills and abilities. I will now explain the various steps on how to become a LIC agent.
In addition, anyone 18 years of age or older who has completed a high school diploma (CSS) equivalent or better can become a LIC representative.
Step 1 – LIC Portal
The most important and first step to becoming a LIC agent is to register your company through the LIC portal.
You must provide basic information such as your name, town, town, city or area of residence, contact information, email address, and educational background.
Even if the LIC portal doesn’t say that, we recommend that you summarize your reasons for wanting to become a LIC agent in two or three sentences. This can be very helpful to the LIC representative handling your registration.
However, the easiest way is to visit the nearest LIC office or meet with your local LIC development manager.
Step 2 – Pass the Interview
The regional development manager or branch manager of the LIC office will interview you. Please note that it is very important to pass this interview. If you do not successfully complete this step, you have no hope of realizing your ambitions and becoming a LIC agent.
There are no specific questions required to prepare for this interview. The officer will ask you questions, test your general knowledge, and ask you some questions about money and finances.
At the same time, an anonymous police officer will, among other things, evaluate your character, presentation, manner and clarity of speech.
Step 3 – Free Training
If you pass this interview, the police officer will ask you to enroll in a free training course. This is usually done at the LIC office in your city. If you live in a village or village, you should move to the nearest place where this training takes place.
Training runs for 25 hours. It takes place over 3-4 days. In this course, you will learn all about the life insurance business and its aspects.
You will also learn more about the Insurance Regulatory and Development Authority of India (IRDAI) and life insurance regulations.
IRDAI, as the name suggests, is the Indian government agency that regulates the insurance business in the country. Therefore, knowledge of this institution is very important to work as a LIC agent.
Step 4 Register for Exam
After passing the interview and training, the next step is to enroll in the LIC Agent Test (PRT). There are two ways to register for the LIC Agent PRT.
Online – Register on the IRDAI portal
Offline- Register at your nearest LIC branch
To register for a vocational exam, you can seek help from a LIC development specialist. Some documents are required to register
- 4 passport-sized color photos.
- A copy of your SSC or equivalent or higher education flyer.
- A copy of the card for the Permanent Account Number (PAN).
- The check was canceled.
If you do not have a bank account, we recommend that you open a bank account before applying for the LIC Pre-Recruitment Exam (PRT). Protect your checks at the bank.
- According to the Supreme Court of India, you do not need an Aadhar card to open a bank account.
- A PAN card is sufficient. However, you must provide proof of a valid address, such as a food card, driver’s license, or government or central government.
- A PAN card is required. So, get one from the income tax department before applying for a pre-employment test for a LIC agent.
LIC Agent Exam Fees
According to the IRDAI portal, online registration fees are higher than offline registrations. The fee structure is as follows:
- Online Registration & Exam
• Registration fee: 150 rupees.
• Online training fee: 150 rupees.
• Study materials/books: 200 rupees.
• Preliminary test fee (online): 500 rupees.
• Total: 1,000 rupees.
When you register online with IRDAI, you will receive a unique ID and password. Keep the URN in a safe place. You can change your password to better remember it.
2. Offline Registration & Exam
- Registration Fee: Rs.150.
- Study Material/ Book: Rs.200.
- Pre Recruitment Test (Offline) Fee: Rs.500.
- Total: Rs.850.
LIC Exam Dates
There is no specific date for the IRDAI to test for hiring new LIC agents. However, as soon as you register for the preliminary exam, the LIC will notify you of the exam date and location.
If you registered online, we recommend that you check the IRDAI regularly. The LIC portal publishes important news about exam dates.
If you registered offline through the LIC Development Officer or LIC branch, please inquire about future recruitment tests.
LIC Exam Hall Ticket
Candidates for pre-recruitment of offline LIC agents can obtain rehearsal room tickets at the nearest LIC office. Tickets must be authenticated by a senior LIC representative.
For online applicants, a tested LIC agent access ticket can be downloaded from the IRDAI portal.
Preparing For The LIC Agent Exam
In fact, it is very easy to prepare for the LIC Agent Admission Test, also known as the LIC Agent Admission Test.
Visit the Indian Insurance Institute (III) website to download training materials. There is also a book by IRDAI/LIC.
Also read many newspapers and magazines to hone your general knowledge.
LIC Agent Examination Syllabus
The LIC program includes English and Hindi as well as some basic math and general knowledge.
It also contains various rules, ordinances and laws that apply to life insurance business in India. These laws are adopted by the IRDAI.
A minimum of 100 hours of training is required to take the LIC Agent Test or Recruitment Test.
LIC Agent Examination
Now we move on to the test itself. As mentioned earlier, this exam is called the Pre-Recruitment Test. Others call this the LIC agent test.
- This exam lasts 60 minutes.
- You will be asked 50 questions.
- This is an objective question. It means you have to choose the right one among the suggested questions.
- Each question is graded. In other words, the entire test is designed to be 50 points.
To work, you must achieve a minimum of 18 points in the agent’s LIC rating. The more points you get, the better.
Become a LIC agent
Passing the employment test will prepare you to become a LIC agent. The LIC will issue a meeting letter in which you will be appointed as your designated representative. You will also receive a license from the IRDAI to perform your duties as a LIC agent.
Remember, you can only be your LIC agent with one letter of promise from your company. You will also need an insurance agent license from IRDAI before starting this business.
LIC Agent Salary and Commission
Now that you know how to become a LIC agent, let’s see how much money you can make.
- You receive 35% of the premium you paid in your first year of life from your life insurance policyholder.
- If you work harder and attract more people to buy LIC life insurance, you can get a commission bonus of up to 40% in your first year. There are other conditions as well.
- Up to Rs 200,000 in annuities or tips with a company guarantee of 15 years or more. This means that for the next 15 years after retirement, the LIC will receive premiums from the people to whom you sold LIC life insurance.
- If your LIC representative dies for any reason, you may be eligible for family benefits. To do this, the LIC agent was required to sell life insurance worth Rs 100,000 as pre-death premiums. Transfer benefits are provided to the nominated or legal heirs of the LIC agent.
- Get a bonus of Rs 200,000 and the company will continue to pay the commission if you quit your job at LIC or lose your agency for any reason.
- When you work as a LIC agent, your income automatically increases by selling more LIC life insurance. There is no upper limit on income.
- When selling insurance over the next two years (Years 2 and 3), you will receive a commission equal to 7.5% of the total annual premium paid by LIC Life Insurance Holders.
- From the fourth year of insurance, you receive 5% of the annual fee paid by the LIC from the person insured for life.
- LIC provides free life insurance to agents. This means that their family will be covered by the LIC agent’s premature death.
Advantages of LIC Agents
Becoming a LIC agent has several advantages: you can be rewarded for your hard work.
Branch Manager Club Relations: For newly appointed LIC representatives with outstanding performance.
Branch Managers Club: An outstanding performance as a member of the Branch Managers Club. The status of the club increases with the game.
You can also access:
- Zonal Manager’s Club
- Chairman’s Club
- Corporate Club
Additional Benefits for LIC Agents
You can also get several financial benefits to save money.
- Interest-free car loan.
- low interest rate mortgage.
- office maintenance.
- household allowance.
- development for the celebration of the holidays,
- Replaces mobile and fixed telecommunications rates.
LIC City Career Agent
In metropolitan areas, the LIC appoints life insurance agents for certain categories. They are called City Career Agents or CCAs.
In addition to the benefits listed above, CCA receives a monthly salary of Rs 7,000 per month from LIC. This is due to the high cost of living in the metropolitan areas of India.
Amazing Features of LIC Agency
Did you know that becoming a LIC agent offers many more benefits than just making money?
- Lifetime Income: LICs pay premiums for insurance they sell long after they retire.
- Some LIC agents earn between 1.2 million and 1.5 million kroner per month, which is higher than the highest paying jobs in India.
- You can also open an online agency to sell your LIC policies.
- A LIC issued to an agent is considered a valid government-issued ID.
- The LIC provides all support to the agent.
However, there are downsides to being a LIC agent.
Adverse as LIC Agent
From September 1956, the Life Insurance Corporation of India (LIC) obtained an absolute monopoly over the Indian life insurance sector.
However, the Indian government abolished this monopoly in 2000 and opened the life insurance market to joint ventures between domestic and foreign insurers as well as Indian and international insurers.
As a result, LIC agents can face several problems.
- Fierce competition from private insurers, especially those that have joint ventures with foreign companies.
- The best investment option is for “middle class” Indians who were once LIC’s primary life insurance customers.
- Loss of confidence in insurance products due to high premiums and relatively low profitability.
- Fear that a claim against the insurer will be denied for any reason. No one reads the fine print, and rejection cases spread quickly.
- LIC does not offer tailored products to individuals and joint ventures in the life insurance sector.
- Extend lifespan with better medical equipment.
- Private insurers and JVs raise age limits for life insurance companies. Some insurance companies go up to 99 years, and the LIC can’t beat that.
- A reputable private insurance company that combines life, health and other plans offers general coverage with LICs continuing to withdraw.
- Intense competition from insurance websites that enable direct online purchases eliminates the need for an agent.
- An Indian reluctant to deal with agents because of fear of being deceived.
- A financial company that provides free or subsidized life insurance to members of a Systematic Investment Plan (SIP).
- Affordable life insurance systems such as Ayushman Bharat from the Indian government and Post Life Insurance (PLI) from the India Post are available at very affordable prices.
Despite the shortcomings, there are very good reasons to become a LIC agent. New life premiums for the 2018-2019 fiscal year amounted to Rs 755.88 billion (US$11.28 billion) between April 1, 2018 and August 31, 2018, an increase of 6.20% year-over-year.
According to market sources, the life insurance industry in India will exceed $330 billion by 2020. This means many opportunities to earn money and live a happy life as a LIC agent. Now that you know how to become a LIC agent, give it a try. It can open the door to wealth.